Question

Jackson Electric Services Company incurred​ $800 as a repair expense and paid for it in cash. The company is a sole proprietorship. This transaction will​ ________.

Answer 1

Answer:

Decrease in the owner's equity

Explanation:

In the given problem it is given that the company is sole proprietorship. Thus, the owner is responsible for the loss or gain or liabilities.

Now,

the repair expenses has been paid in cash, thus it will be debited from the company's equity.

Hence, the transaction will be decrease in the owner's equity.